BILL Holdings, Inc.

Good afternoon, and welcome to Bill.com's third quarter of fiscal 2021 earnings conference call. Joining us today for today's call are Bill.com's CEO, Rene Lessert, CFO, John Reddick, and VP of Investor Relations, Karen Sansot. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 in your telephone. Please be advised that today's conference is being recorded. With that, I would like to turn the call over to Karen Sansot for introductory remarks. Karen?

Thank you, Operator. Welcome to Bill.com's fiscal third quarter 2021 earnings conference call. We issued our earnings press release a short time ago and furnished the related form 8K to the SEC. The press release can be found on the investor relations section of our website at investor.bill.com. With me on the call today is Renee Lissert, Chairman, CEO, and founder of Bill.com, and John Reddick, Executive Vice President and CFO. We are also joined by Blake Murray, CEO and co-founder of Divi. Before we begin, please remember that during the course of this call, we may make forward-looking statements about the operations and future results of Bill.com that may involve many assumptions, risks, and uncertainties. If any of these risks or uncertainties develop, or if any of the assumptions prove incorrect, Actual results could differ materially from those expressed or implied by our forward-looking statements. For discussion of the risk factors associated with our forward-looking statements, please refer to the text in the company's press release issued today and to our periodic reports filed with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC and available on the investor relations section of our website. We disclaim any obligation to update any forward-looking statements. On today's call, we will refer to both GAAP and non-GAAP financial measures. The non-revenue financial figures discussed today are non-GAAP unless stated that the measure is a GAAP number. Please refer to today's press release for the reconciliation of GAAP to non-GAAP financial performance and additional disclosures regarding these measures. Now I'll turn the call over to Rene. Rene?

Thank you, Karen. Good afternoon, everyone. Thank you for joining us today. I hope that all of you and your families are in good health and doing well. I'm pleased to report that Q3 was a very strong quarter as a result of our continued focus on rigorous execution. I'm also excited to announce that we've entered into a definitive agreement to acquire Divi, a leader in the spend management space. It cannot be more enthusiastic about this transaction and the significant value our combined companies can create for our customers. I'm thrilled to welcome the talented Divi team to the Build.com family when the transaction closes. Blake Murray, the co-founder and CEO of Divi, is with us today to talk about our shared vision and commitment for helping SMBs transform, grow, and thrive. We posted a slide deck on our investor relations website with an overview of the transaction. I'll share more about Divi's transaction after we recap our fiscal third quarter results. We delivered record results and accelerated growth in our core revenue, transaction fees, and total payment volume. In the fiscal third quarter, core revenue increased 62% year over year. Transaction fees increased 112% year over year. And TPV increased 44% year over year. These results are only possible because of the passion and dedication of our employees. I'd like to thank them for their tireless efforts in delivering another excellent quarter. Every day, they are laser focused on how we can help small and mid-sized businesses simplify and transform their financial operations. Our mission is to make it simple to connect and do business. Our platform enables this by helping businesses simplify their back office financial operations, connect with suppliers and customers, and make payments. We ended the third quarter with over 115,000 customers, more than 2.5 million network members, and an annualized run rate of $140 billion in TPV. We believe we are the leading digital B2B payments platform for SMBs and operate one of the largest B2B networks in the United States. Throughout the pandemic, we have been inspired by the resilience and innovation of our SMB customers. It's been more than a year since COVID-19 changed everyone's lives and disrupted business operations. During this time, we've seen our customers adapt their business models, expand their services, and embrace digital tools. For example, WAG, the dog walking service, expanded into new virtual offerings like WAG Health, Pet Care Advice, and Remote Training. With the help of cloud technology solutions like Bill.com, they were able to serve many more pet parents daily through new virtual services and automation. Bill.com empowered them with faster insight into their spend and cash flow, which enabled them to reduce expenditures while investing in these new offerings. Another example is Evolution Event Solutions. They had to quickly pivot from live events to virtual ones. When the pandemic hit, they needed to be able to analyze their financials on a dime, and systems like Bill.com helped them closely track their daily cash flow and manage the company through the crisis. With Bill.com, their time was freed up to focus on more strategic activities, including focusing on their post-pandemic plans for integrated live and virtual events. The scarcest resource for an SMB is time, and our deep understanding of that has driven us to make sure SMBs experience simplicity and ease with every Bill.com interaction. For example, new customers are able to sign up and actually use the platform to manage documents, create invoices, make payments, and collaborate with coworkers all in the same day. This ease of use is one of the reasons that in February, Bill.com was named a G2 Best Software winner for the second year in a row. The quotes from Bill.com customers on G2's website speak for themselves. I love Bill.com. It saves me time and keeps me organized, said one. The best and easiest to use payable system on the market, said another. And finally, collecting payments, paying bills, all of it is super easy. These comments align with the recent customer survey to over 2,000 customers. More than 90% of those customers said Bill.com is easy to implement, learn, and use, and that Bill.com makes them more efficient. 70% or more said they found Bill.com was at least two times faster than traditional accounts payable methods and the biggest efficiency improvement they've made in the last year. Delivering for our customers is what motivates all of us at Build.com. I'm extremely grateful for our team's commitment to bringing our mission to life every day for the businesses that drive so much of our economy. In addition to talking with customers, we also reach out to SMBs across the country to understand how they are doing. We're hearing that many business owners are optimistic about the year ahead. We recently commissioned a survey of 1,000 small and mid-sized businesses in the U.S. and learned that almost 80% of businesses began or plan to begin digital transformation during COVID-19. And about 75% of companies surveyed are planning on introducing new products and services in an effort to drive growth as they navigate year two of the pandemic. In addition, 85% of businesses rank generating revenue as their top priority. This is a significant shift from our survey a year ago, where companies were focused on cost savings and business model adaptation. These data points from both our customers and the general SMB population tell us we are and can be an important part of driving digital transformation for the financial back office of SMBs everywhere. We believe that we are at the beginning of a multi-year digital transformation wave that has been accelerated by the COVID pandemic. Shifting gears, I'd like to highlight some of our recent initiatives, which are driving expanded adoption among current customers and attracting new ones. We continue to enhance our menu of payment offerings for our customers and network members. Adoption of our newer payment methods, such as virtual card and cross-border, contributes significantly to our transaction fee growth in Q3. In addition, we've been piloting our real-time payments product, which we've branded Instant Transfer. As we mentioned last quarter, we are building an integration with Stripe that will expand the reach of our Instant Transfer product by enabling vendors to receive funds via debit cards. The Stripe integration will be generally available this quarter and will allow us to deliver real-time payments to nearly all of our more than 2.5 million network members' bank accounts. Another focus area has been on simplifying the bill creation process while enabling straight-through processing for supplier payments. In addition to our work on data entry and capture using our AI capabilities, we are also working with a third party to enable electronic bill presentment for our platform. This will give us the ability to fetch and automatically enter bills from large enterprises, such as utility companies, directly into our platform. We are also working with this third party to automatically route payments via virtual cards to those same suppliers. The result is a near autonomous bill collection and payment process from beginning to end. We expect to introduce this functionality later this calendar year. We recently launched a feature that enables accounting firms to upload and onboard up to 200 clients at once instead of individually. This capability enables our accounting firm partners to scale much faster and is a powerful reason for new firms to join our platform. Our platform's ability to help accounting firms manage and onboard clients at scale attracts new business opportunities. As an example, one of our accounting firm's partners, Horn LLP, won a contract with several states to process applications and distribute COVID relief funds. Horn selected Bill.com to help them distribute these funds because we make handling large volumes of payments seamless with our platforms and APIs. Given our platform's ease of use, we continue seeing significant demand for mid-market customers. We recently announced our new two-way sync integration with both Microsoft Dynamics 365 Business Central and GP Software. This integration increases efficiency, ease of use, and workflow controls for customers by creating a real-time data sync between our platform and Microsoft Dynamics. The initial feedback has been very positive. We're excited about the opportunity this has to extend our reach as tens of thousands of mid-market companies rely on Microsoft Dynamics ERP systems. For example, Colin Casper, CFO of JMA Ventures, a real estate investment and development firm, said, and I quote, the build.com and Dynamics 365 sync streamlines our entire AP process, from coding invoices, collecting approvals, to making digital payments. enabling us to have real-time visibility and understanding of our cash position, both with the accounting team and at the asset management level. This integration eliminates duplication of work efforts and saves us tremendous time across the entire company. In summary, the results this quarter are a strong demonstration of the breadth of our platform. It powers financial operations for organizations ranging from very small businesses to mid-market companies, and it serves branded offerings for financial, accounting, and wealth management partners of all sizes, We have a large market opportunity and the right platform, strategy, partnerships, and team to win it. Now, I'll turn the call over to John to review our financial results.